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Determinants of Capital Adequacy Ratio for Pension Funds: A Case Study in Indonesia

Author

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  • Sunaryo Sunaryo
  • Alvia Santoni
  • Endri Endri
  • Muhammad Nusjirwan Harahap

Abstract

The study aims to identify factors that influence adequacy ratio of fund (RKD) of the Defined Benefit Pension Plan (PPMP) Pension Fund for 2009-2018 period such as Return on Asset (ROA), Cash Conversion Rate (CCR), Central Board Revenue (CBR), Operating Expense Ratio (OER), Investment Expense Ratio (IER), and investment. The data analysis was common effect panel data regression method and the samples were twenty pension funds. The results showed that ROA, CCR, and investment have a significant and positive influence towards RKD, CBR and OER have a significant and negative influence towards RKD. IER did not have significant influence towards RKD.

Suggested Citation

  • Sunaryo Sunaryo & Alvia Santoni & Endri Endri & Muhammad Nusjirwan Harahap, 2020. "Determinants of Capital Adequacy Ratio for Pension Funds: A Case Study in Indonesia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 203-213, July.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:4:p:203-213
    DOI: 10.5430/ijfr.v11n4p203
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    References listed on IDEAS

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    1. Paskalis Seran & Usil Sis Sucahyo & Apriani Dorkas Rambu Atahau & Supramono Supramono, 2023. "The Efficiency of Indonesian Pension Funds: A Two-Stage Additive Network DEA Approach," IJFS, MDPI, vol. 11(1), pages 1-19, February.

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